问题如下：
5. Are Robinson’s first two observations, respectively, correct?
选项：
A.Yes for both observations.
B.No for the first and Yes for the second.
C.Yes for the first and No for the second.
解释：
Robinson’s first statement is wrong. The value of an asset is the present value of its future cash flows. Economic income each year is the cash flow minus economic depreciation, EI = CF ED. For this company, which is declining in value each year, the economic depreciation is positive and EI is less than CF each year. Consequently, the present value of economic income (EI) will be less than the present value of future cash flows (CF). Robinson’s second statement is correct.
“ cash flows in the basic capital budgeting approach”怎么理解，我直接想到了最开始讲的扩张项目的现金流，要扣除期初的现金流出，结果就做错了。
